Burundi receives support from the African Development Bank Group in key development sectors | African Development Bank

The African Development Bank Group will mobilize nearly $4 million to help Burundi urgently purchase more than 3,000 tons of fertilizer for the upcoming agricultural season. The aid will allow the country to buy fertilizer for the first phase of the season, which starts in May. The country’s need for the whole season is estimated at 145,000 tons.

Burundian Minister of Finance, Budget and Economic Planning, Mr. Audace Niyonzima, requested this support on behalf of President Évariste Nadyishimiye during a meeting with the head of the African Development Bank in Abidjan on April 7, 2023.

Dr. Akinwumi Adesina, president of the banking group, said the bank will use two existing projects from its current portfolio in Burundi to help meet the immediate needs of the first phase. The African Fertilizer Development Financing Mechanism, a special fund managed by the African Development Bank, also offers an opportunity that will be explored for subsequent phases, Adesina said.

The Bank will also support Burundi’s efforts to explore fertilizer procurement opportunities with other international bodies, such as the World Food Programme.

Adesina encouraged the Burundian government to implement reforms in the fertilizer sector. He proposes setting up an electronic wallet (e-wallet) for greater transparency in the fertilizer distribution process to beneficiaries.

The meeting focused on concrete concerns and was a continuation of talks between Burundian President Evariste Ndayishimiye and Dr. Adesina at the last Dakar 2 summit on food sovereignty and resilience in January 2023.

President Adesina reaffirmed the Bank’s commitment to support the government in its efforts to mobilize resources for Burundi’s Food and Agriculture Delivery Compact – concluded at the Dakar 2 Summit – amounting to $200 million over five years. Discussions are underway to fund the pact with other key partners, including the Netherlands, the World Bank and the International Fund for Agricultural Development.

To this end, the Bank has mobilized approximately $1.3 million to finance technical studies for the establishment of agricultural processing zones and irrigated areas in Karusi and Cibitoke.

The Burundian minister also requested participation in the Bank’s Affirmative Finance Action for Women in Africa or AFAWA initiative, for youth and women in his country.

In response to this request, the Banking Group committed to strengthening the capacity of the Burundian Youth Investment Bank (YIB) and the Women’s Development and Investment Bank (WDIB). Adesina explained that the bank is moving towards establishing investment banks for youth across the continent.

During the meeting, the parties also discussed regional integration. Adesina said the bank plans to invest about $100 million in the construction of the Uvinza-Musongati-Gitega section of the Tanzania-Burundi-Democratic Republic of Congo railway line, between Tanzania and Burundi. The project will be presented to the Board of Directors in September 2023.

Adesina assured the Burundian government of the bank’s support to other partners to mobilize the remaining funds for the construction of the $1.4 billion Tanzania-Burundi rail section, of which approximately $645.76 million will be mobilized.

Niyonzima, also governor of the banking group for Burundi, was accompanied by Sanctus Niragira, Minister of the Environment, Agriculture and Livestock.

The visit to the headquarters of the Pan-African Development Institution highlights the Bank’s ongoing relationship with its member countries and its role as the leading multilateral development finance institution in Africa. The senior Bank team meeting the delegation included Vice President for Agriculture, Human and Social Development Beth Dunford; Martin Fregene, Director of Agriculture and Agribusiness; Abdul Camara, Deputy Director General for East Africa and Pascal Yembeline, Country Manager for Burundi.

The bank’s active portfolio in Burundi includes 19 operations with commitments of $372 million, mostly concentrated in the energy (45%), transportation (34%), agriculture (12%) and social sectors (8%) sectors.